Bipartisan BUILD America 250 Act Would Add Annual Fees on EVs to Fund Road Repairs
According to Shale Magazine, the House Transportation and Infrastructure Committee introduced a five-year transportation funding bill in May that includes a proposal to charge EV owners a $130 annual fee and plug-in hybrid owners a $35 annual fee to help pay for road repairs. The bill, known as the BUILD America 250 Act, is designed to offset the revenue gap created as more drivers shift away from gas-powered vehicles, which currently fund road maintenance through federal fuel taxes.
What It Means for Subcontractors
- Highway and bridge contractors could see more stable federal funding if the bill passes, as the EV fee is intended to shore up road maintenance financing that has eroded alongside fuel tax revenues.
- The 18.4-cent federal gasoline tax has not increased since 1993, according to the article, meaning infrastructure funding has lagged for decades. Any new revenue stream could support contract volume for pavement, bridge, and road crews.
- Slower EV adoption, driven by rising vehicle costs and the removal of up to $7,500 in purchase subsidies in 2025, may reduce the near-term funding gap, but long-term highway funding reform remains a live issue for contractors dependent on federal project pipelines.
